Savings and Loans Lost a Total of $10 Billion in 1981-1982

question 11

Multiple Choice

Savings and loans lost a total of $10 billion in 1981-1982 due to a combination of rising interest rates in 1979-1981 and

• A) the recession of 1981-1982 that reduced real estate prices enough to cause significant loan defaults.
• B) the regulatory restrictions enacted by Congress in 1981 and 1982.
• C) the loss of market share to commercial banks that were allowed to compete directly with thrifts in the real estate market.
• D) the acceleration of inflation in 1981-1982 that caused thrifts to lose additional funds to money market mutual funds.

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Definitions:

Nitrogen Bases

Organic molecules that serve as the building blocks of nucleotides, which in turn make up nucleic acids like DNA and RNA. The main nitrogen bases are adenine, thymine, cytosine, guanine, and uracil.

RNA Primer

The sequence of about five RNA nucleotides that are synthesized during DNA replication to provide a 3' end to which DNA polymerase adds nucleotides. The RNA primer is later degraded and replaced with DNA.

RNA Primase

An enzyme that creates a short RNA primer as the first step in DNA replication, necessary for DNA polymerase to initiate synthesis.

Okazaki Fragments

Short sequences of DNA nucleotides which are synthesized discontinuously and later joined together during DNA replication on the lagging strand.